Indian Energy Exchange (IEX) Q4 20/21 earnings summary

Executive summary

• FY21 was a record year, with 74 BU traded, revenue of ₹357.4 crore and PAT of ₹213.5 crore; electricity trading volume rose 37.3% YoY.

• Digital operations continued 24x7 through COVID-19; RTM and GTAM launches diversified trading and contributed 13% of operating revenue.

Financial highlights

• Standalone revenue increased 20.27% to ₹35,738.55 lakh; operating revenue grew 23.38% to ₹31,711.38 lakh.

• Standalone PBT rose to ₹28,179.53 lakh from ₹22,778.63 lakh; PAT increased 19.99% to ₹21,348.82 lakh.

• Consolidated revenue was ₹35,623.10 lakh and PAT ₹20,543.12 lakh; IGX’s initial operating losses weighed on consolidated earnings.

• EBITDA was ₹29,970.56 lakh, up from ₹24,459.43 lakh; EBITDA margin reached 83.86%, versus 82.31% in FY20.

Outlook and guidance

• GDP growth of 9.5% was forecast for FY22, with electricity use expected to rise commensurately; favorable policy, ample capacity and new products were cited as growth drivers.

• India Ratings projected power-demand growth of 10–12% YoY in FY22 and 6–6.5% YoY in FY23–FY24.

• Priorities include longer-duration electricity and green contracts, an integrated day-ahead market, capacity and ancillary services markets, and further cross-border trading.